Thorstein Veblen 1857-1926, a Norwegian American, a socialist and economist during his time famous with his theory about the consumer goods are not simply priced according to Alfred Marshall - Marginalism. His theory about hedonistic human behaviour will greatly influence the price of goods. Simply put, people are willing to pay higher price for other intangible fictitious value for the sake of hedonism, hence called the Veblen price. Veblen price has been widely used for goods such as Gucci, Loius Vuitton and usch other luxury brand. The goods itself for such brand will not sale, if the price is not quote at high price. It a theory of justify yet critic the lavish spending behaviour of the riches.
No comments:
Post a Comment